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The correct option when a nonprofit institution collects the savings of its members and invests those funds in a wide variety of assets to provide its members retirement benefit.
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Answer to Problem 4MCQ
From the available options, the correct option is there is a pension fund.
Explanation of Solution
When a non-profit organization collects the saving of its members and then invest this saving in other assets so that it can provide a retirement benefit to its members, it will provide this benefit as a pension fund. Whereas, mutual funds, banks, loans, and life insurance companies are all financial systems that do not come under the non-profit organization.
Therefore, the correct option is d (pension fund) and all other options are incorrect.
Introduction: A non-profit institution is an institution whose aim is not profit-making but to serve society or members of the organization.
Chapter 22 Solutions
Krugman's Economics For The Ap® Course
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